William Blair analyst Stephen Sheldon has maintained their neutral stance on Z stock, giving a Hold rating on October 29.
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Stephen Sheldon has given his Hold rating due to a combination of factors that reflect both positive and negative aspects of Zillow Group’s financial performance and future outlook. The company reported a modest beat in revenue and adjusted EBITDA, slightly surpassing estimates, which indicates a stable performance. However, the gross margin contraction, likely influenced by the Redfin partnership, and the underperformance in rentals and other revenue segments present concerns.
Despite reaffirming its guidance for midteens revenue growth and margin expansion, the expectation of similar growth patterns in the coming years suggests limited upside potential. The stock’s current trading multiples, being relatively high compared to future earnings estimates, further justify a cautious approach. These elements collectively contribute to the Hold rating, as they suggest that while Zillow Group is performing steadily, significant growth catalysts may be lacking in the near term.
In another report released on October 29, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $82.00 price target.
Based on the recent corporate insider activity of 125 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of Z in relation to earlier this year.